7.8 Gold Policy Morning Review: Gold Dives off a High Platform! Nearly 90 Points Drop in 15 Minutes—Bulls Completely Fizzle Out?

In the early hours, gold swung through an extreme “roller coaster” pattern: it traded weakly in the morning, gradually stabilized and rebounded in the afternoon, and then surged to the day’s high at 4180. However, it was suddenly hit by a concentrated selloff from the bears in the evening—prices dropped straight down, with the low probing 4092. In a short time, it gave back all of its intraday gains. In the short term, the trend has flipped from strong to weak.

From the news perspective, the U.S. Dollar Index strengthened briefly in the evening, and U.S. Treasury yields stopped falling and rebounded, directly suppressing gold’s performance in terms of its pricing. At the same time, market expectations for the Federal Reserve’s pace of rate cuts later this year turned cautious again. Combined with concentrated profit-taking from earlier long positions that rushed to exit, the heavy sell pressure was released in a cluster, causing a rapid pullback and a temporary cooling of market risk-aversion sentiment.

From a technical perspective, on the 15-minute chart, price surged and then pulled back, printing consecutive large bearish candles that broke below short-term moving average support. The MA5 quickly turned downward, forming overhead pressure. Price briefly pierced below the lower Bollinger Band, while the MACD green histogram bars expanded rapidly, indicating bearish momentum concentrating and releasing. The key support below is at the previous low near 4092. Overhead resistance to watch is the 4130-4146 range. In the short term, bearish forces have the upper hand. If support at 4090 is broken, downside room will open further.

Trading reference: Sell short in batches within the 4120-4140 rebound range, targeting 4100, 4080, and 4050. $XAUT